California Dreaming

“The pithy, punchy line ‘Portugal is the California of Europe’ resonates for a lot of West Coasters,” writes Becca Williams in The Portugal News. “The two bask in look-alike sweeping coastlines (Cali with 840 miles, Portugal with 1,114), undulating hills, mountains, valleys, deserts, and forests. Both share a rich biodiversity up and down the coast of plants and animals in varying climates and landscapes with wine regions flourishing in each.”

Portugal’s sunny Algarve coast is often branded the “California of Europe.” Although Portugal experiences more hours of sunshine per year than California, and its winter is less harsh, their weather is relatively similar.

While some compare California to the Algarve, others look to Lisbon, the capital city, when seeking to put down roots in “Portugal’s California.”

Then, too, there are undeniable similarities between San Francisco and Lisbon, from iconic bridges to quaint trams and hilly landscapes. Comparisons between the two cities run deeper than that, with some people wondering whether they are twin cities. And then it hits you: Lisbon is a sister city to San Francisco. The older sister city. Identical in nature. Steep, narrow, winding residential streets. Well adorned buildings, and great, big bridges. 

“It seems like an odd choice, doesn’t it?” Madonna quipped after moving from London to Lisbon in 2017. But lately, Portugal has become a vital destination for Californians in search of reinvention and rejuvenation, says Jonathan Littman in his LA Magazine story about Portugal. “A nation that once split the globe with Spain, then lost relevance for centuries, is the new chic spot to grow a startup, forge an international team, buy an apartment, or truly live. The cost of living is less than half that of California, dinner for two runs about $25, good vinho de supermercado is cheaper than our state’s bottled water, and the work-force malaise and politicization of the pandemic that gripped the Golden State and the nation are refreshingly absent.”

“Lisbon pulses with a vibrant expat community,” he continues: “Brazilians, French, Ukrainians, Brits, Africans, Italians, and, increasingly, Californians. Scarlett Johansson bought a flat in the city’s tony Principe Real neighborhood; fellow superhero Michael Fassbender scored a $2 million apartment overlooking the Tagus River. John Malkovich was so smitten he delivered a video mash note: ‘a feast for the eyes … the architecture and the variety of it, the colors, the landscape … great culture, great people, great food.’

“Portugal’s newly arrived celebrities are symbols of a larger diaspora in the making,” Littman concludes. “U.S. emigration to Lisbon and Porto leapt 33 percent in the year before the pandemic. And that quintessential California experience, the tech confab, is back … in Lisbon with the massive Web Summit conference, its in-person status a product of a nation that now boasts an 89 percent vaccination rate, the world’s highest. Once Europe’s budget-vacation destination, Portugal is now Europe’s top tourist spot several years running.”

While not to begrudge Littman and others of their fondness for Lisbon and Portugal’s coastal cities, the adulation doesn’t begin or end there.

Take Portugal’s central cities: Do any deserve the recognition and regard of the Midwestern USA’s? Different though they may be, are there places in Portugal like Chicago, Madison, Cincinnati, Philadelphia and Pittsburgh, Ann Arbor, Omaha, Indianapolis, Minneapolis, Rochester, Des Moines, and Kansas City?

Yes, indeed there are!

Coimbra, Peniche, Aveiro, Castelo Branco, Monsanto, Óbidos, Ovar, Espinho, Vila de Rei, Leiria, Caldas da Rainha, Viseu, Almeida, Tomar, Fátima, and Évora immediately come to mind.

You’d be forgiven for associating Portugal with and tourist resorts. Yet for many expats, the Portugal they know and love is a world away from these sun, sea, sand, golf course stereotypes. The peaceful mountainous landscapes of central Portugal are a world away from the bright lights and relentless energy found in Lisbon and Porto.

“Much of the region is the very definition of unspoiled, both in terms of landscape and lifestyle,” writes Ben Taylor in Portugal Property Guides. “The ancient villages dotted throughout the undulating verdant surroundings make it appear as if time has stood still.”

Rural getaways in the countryside between the city of Coimbra and the Serra de Estrela Natural Park are particularly popular. In this region, new arrivals tend to learn Portuguese out of necessity. This enables them to integrate more quickly than in places like the Algarve, where English is widely spoken. Although plenty of expats are scattered around the area, it’s more likely that your neighbors will be Portuguese–which is exactly what most people who choose to move to this kind of area prefer.

Even east coast Portugal has its worlds of wonder. Among them: Elvas, Belmonte, Chaves, Monsaraz, Almeida, Marvão, Vila Viçosa, Vila Nova de Cerveira, Montalegre, Figuera de Castelo Rodrigo, and, of the Alentejo region bounded on the east by the Spanish frontier. While these may not have the same name recognition as such east coast USA cities as Atlanta, Atlantic City, Boston, Charleston, Charlotte, Hartford, Miami, New York, Portland, Philadelphia, Providence, Richmond, and Washington, DC, what they may lack in nomenclature is offset by history and charm.

The lyrics of California Dreamin by the Mamas and Papas have absolutely nothing in common with the realities of Portugal: All the leaves are brown. And the sky is gray. I’d be safe and warm If I was in L.A. If I didn’t tell her, I could leave today. California dreamin’ on such a winter’s day.

Nonetheless, the California Dream is a concept with which we all are familiar: dreaming about being free and away from hardships, a popular phrase used in the 1960s during the Vietnam war and the Civil Rights movement.

Seeking to strengthen connections between Portugal and California through surfing and conservation — with initiatives linked to sustainability and the blue economy — the Portuguese consulate in San Francisco hosted a conference organized by the consulate and TMA Blue Tech, bringing together an audience of surfers and academics from the University of California San Diego (UCSD).

“As I often say, California is Portugal on steroids,” said Pedro Pinto, in an interview with Lusa/The Portugal News on the sidelines of the ‘Surf Industry Sustainability Initiatives’ conference held in San Diego (USA).

“It’s four times bigger, [it has] four times more population, but there are many similarities and a natural empathy,” he mused. “This is something that we work on—to promote synergies … mutually beneficial at a political and economic level, a macro level, but it is also important to do this at a local level.”

With the similarities, he said, also come common challenges. “One of them is coastal protection, another is the use of offshore renewable energy. It’s something we see more and more with relevance, this connection between Portugal and California, and [we] also want to promote this through surfing.”

(The San Diego event kicked off the Global Wave Conference between Peniche, Nazaré, and Ericeira from October 2nd to 4th, 2023.)

Yes, there are similarities between California and Portugal. But regardless of where you’re from, you can find cities, towns, and villages in Iberia that remind you of physical aspects of America once that “if only …” qualifier is factored in.

We should look to Portugal for what it is, not what it isn’t: California or a replica of anywhere else!

Bruce H. Joffe is publisher and creative director of Portugal Living Magazine.

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Are Americans ‘Flocking in Droves’ to Portugal?

In a word, no.

“For the seventh year in a row, the immigrant population in Portugal has increased, totaling 752,252 in 2022,” writes Lara Silva in in Portugal.com. “According to the Immigration and Borders Service (SEF), there was an increase of 58,365 immigrants in comparison to the year prior (2021), an 8.3% increase.”

The largest growing immigrant populations in Portugal in 2022 were from Brazil and India. The Brazilian community remains the largest immigrant population in Portugal, with over 230,000 people, a 13% increase since 2021, according to Silva (and SEF). The Indian community also increased by 13% to around 34,000 residents, making it the fourth-largest immigrant population in Portugal.

According to SEF, the 10 largest immigrant populations in Portugal are:

  1. Brazil (233,138)
  2. United Kingdom (36,639)
  3. Cape Verde (35,744)
  4. India (34,232)
  5. Italy (33,707)
  6. Angola (30,417)
  7. France (27,614)
  8. Ukraine (26,898)
  9. Romania (23,967)
  10. Nepal (23,441)

Nowhere near that figure are (North) Americans–whether from the USA or Canada.

Data from the Portuguese Immigration and Border Service show that only 216 of the 1,281 foreigners granted permanent residence in Portugal in 2022 came from the United States. Overall, we make up less than 1.5% of the country’s total immigrant population. Statistically, we don’t move the needle.

So, why are the Portuguese increasingly pointing fingers at Americans as the source of their malaise … unable to afford the costs of living in their own country?

Frankly, it’s a matter of politics, not pocketbook economics or immigration.

Brazilians are the most prevalent foreign nationality. The 239,744 resident Brazilians represent 2.29% of the total population. Other significant foreign communities (excluding naturalized citizens) are the ones from other countries of the Lusosphere. In 2023 there were 110,517 from PALOP countries (Equatorial GuineaGuinea-BissauSão Tomé and PrincipeAngolaMozambiqueCape Verde) as well as from Timor-Leste and Macau, corresponding to 1.06% of the total population. In addition, there is a thriving community of people from the Indian subcontinent (chiefly Indians and Nepalis) adding up to 86,698 people or 0.83% of total population. A number of EU citizens have also chosen Portugal as a destination, with the majority being part of the British, Italian, French, German, Spanish, Dutch, Belgian or Swedish communities. These communities are mostly composed of persons looking for quality of life and include an increasing number of pensioners.

Again, no mention of Americans.

It is important to acknowledge that Portugal has become a great destination for expats, digital nomads and international investors looking for a stable country to reside and invest. It is a safe country, with “comfortable” weather, stunning pristine beaches, and an effervescent cultural scene, making Portugal a hotspot for foreigners seeking a great place to emigrate. The friendly population, universal health coverage, free public schools system, and receptive policies, likewise, are elements that define Portugal as among the better destinations for a foreigner to live and grow roots. Even the language is not that a great barrier, since Portugal has one of the biggest English populations in Europe and offers a free translation service available through a simple phone call

Because of the few Americans they’ve come across daily, many Portuguese people assumed that everyone who speaks English is British. Thanks to the USA’s massive media machine and social media, now almost everyone who speaks English is assumed to be American. Articles come out almost daily saying Americans are driving up housing prices, putting Portuguese people out of their homes. It’s beginning to feel as though (some) Portuguese people resent Americans and have stopped welcoming us to their country.

Truth be told, Portugal is being oversold.

Professionals are pumping up the rhetoric and joining the bandwagon of those selling Portugal. Grocers specializing in food products generally hard to find ship them to your doorstep. Therapists deal with post-expat syndrome and other unsettling behaviors. Lawyers cater to the big slice of business that comprises the market of people needing NIFs, bank accounts, and houses. Property agencies are a dime a dozen. Relocation experts promise to facilitate the transition. Packed tighter than sardines in a tin are webinars, blogs, vlogs, and YouTube channels catering to expats, immigrants, and foreigners. We have countless scores of people and groups teaching Portuguese in a variety of formats. Others arrange round-trip scouting trips to the destination(s) of client interest(s), as well as charter flights bringing people and their pets to Portugal. Customized trips and tours are at your disposal, as are money lenders and currency brokers. Portugal itself is subsidizing numerous public relations undertakings that lure people — tourists, travelers, and residents — to its land of the fado and saudade.

Yesterday, I posted an article on my personal Facebook feed about our budget and expenses here in Portugal. (We spend significantly less and have a greater quality of life than in the USA.) Immediately, I was attacked: “Enough! You should know better because you live here. Don’t encourage any more Americans to come here … you are making it impossible for the Portuguese people to live in their own country,” indignantly came a response in Portuguese. Angry, belligerent, and frustrated, she demanded that I remove my post. With nasty, condemning words, she pointed a finger personally at me for failures of a society.

I can understand her frustrations.

“There are probably all sorts of reasons to resent US citizens, starting with our last 50 or more years of foreign policy,” writes Barbara Grassey. “Reality TV is a good reason, too. The MAGA mentality is seen as naïve and offensive. Fortunately, Portuguese people mostly find the things we do odd, more than something that needs to be resented.”

Inflation and housing prices are going up everywhere.

Are Americans driving up the prices?

Americans may be more willing to pay higher prices for housing because their frame of reference is US housing prices. But there aren’t enough US citizens in Portugal to be the sole driver (or really any kind of driver) of higher housing prices.

Part of the problem is that wages are low here. Portuguese minimum wage is €887 per month or about $967–the lowest in western Europe. In Portugal’s larger, preferred, and coastal cities, the average rent for a one bedroom begins at €600 to €700–and more. One thousand euros seems closer to average. So yes, just like in the US, people making minimum wage or a little more cannot afford housing in areas where their families have lived for generations. That is bad and wrong, no matter what country you’re in. Jobs are in the cities; affordable housing is outside the cities. Americans coming in with remote jobs or retirement income are better able to afford these places, but even some of them are looking outside the cities due to the skyrocketing rents.

Will this housing problem be resolved? There are no quick and easy solutions, but the Portuguese government is making moves to help keep costs down. 

Some of the housing upheaval has been caused by corporations buying up large numbers of apartments in major cities and tourist areas for Airbnb-type rentals. A new law put in place bans short term rentals (read: Airbnb) in residential buildings where people live permanently. An Airbnb host can make a lot more money with overpriced short term rentals than s/he can on an annual rental agreement. This new law should limit the number of Airbnbs and create more permanent housing for residents, which will hopefully stabilize rents and perhaps cut the ROI for overpriced units, making them a bad investment. While I don’t expect prices to go down, hopefully it will stall some of the huge price jumps and settle the market.

The Portuguese Golden Visa program also has changed its requirements to encourage investment outside of the popular cities where Portuguese are being priced out of housing. Minimum investment for a Golden Visa has been raised to €500,000 and, if you’re investing in residential real estate, you are restricted to buying in the interior of Portugal (not in popular coastal areas like Lisbon, Porto, and The Algarve) or Madeira and the Azores. The “record numbers” of US citizens receiving Golden Visas in 2021 was 102. Few Americans are arriving waving wads of cash and screwing the housing market.

Also to be considered is Portugal’s debt.

“While the troika (comprising the European Central Bank, the European Commission, and the International Monetary Fund) was determining Portugal’s fate, China was busy buying Portuguese companies,” charged writer Jochen Faget. “That trend has continued. Is the EU member on the road to economic and political dependence?”

“At one time the Portuguese power company Energias de Portugal (EDP) was a proud state- owned company with more than 25,000 employees. Soon it could be a lucrative corporation owned by the Chinese,” Faget predicts. China Three Gorges (CGT), a state owned power company which already owns a quarter of EDP, has made a takeover bid on the Lisbon Stock Exchange, intending to buy the remainder of the company’s stock.

It’s part of a ‘master plan’ with which the People’s Republic wants to take over key areas of the Portuguese economy, warn critics. The Portuguese government, on the other hand, says that the Chinese are just as welcome as any other foreign investors.

The chronically cash-strapped government of hard hit Portugal is pleased with the Chinese financial injections — especially since they helped the country at the western end of Europe through the tough troika (made up of the European Central Bank, the European Commission and the International Monetary Fund) period. The Chinese even stepped up during the crisis and bought — as no one else did — Portuguese government debt.

Today, the Portuguese insurance company Fidelidade belongs to the Chinese Fosun Group, just like the highly lucrative private clinic operator Luz Saude. Fosun also controls a quarter of the Millennium BCP Bank. Haitong bought the investment bank BESI for €379 million ($423 million at the time).The HNA Group became a junior partner at the airline TAP. The Portuguese power grid operator REN is now part of China’s State Grid International. In Sines, south of Lisbon, a barely used deep-sea port is being expanded by Chinese companies.

Chinese investment raised through golden visas totaled 433.7 million euros between 2020 and July 2023, with eight visas granted that month, according to SEF data, reports The Portugal News

“The Chinese are investing mainly in finance, insurance and banking, as well as infrastructure,” said Ilidio Serodio, vice president of the Portuguese-Chinese Chamber of Commerce in the capital.

Meanwhile, a total of 78% of US companies anticipated new investments on Portuguese soil, according to the most recent Barometer of the American Chamber of Commerce in Portugal cited by The Portugal News in March 2022. “In a universe of around 1,000 American companies in Portuguese territory – which employ close to 50,000 workers – 75% believe their turnover will increase this year, while 25% predict that it will continue. Regarding investments, the trend is similar. A total of 78% of US companies anticipate new investments on national soil, with 19% not expecting to make any investments.”

Whether capitalism or communism, Portuguese nationals are less concerned about corporate buyouts and takeovers … unless they’re directly affected consequentially. Isn’t it easier to take umbrage at individuals collectively than at multi-national corporations?

As is unfortunately true in many nations worldwide — especially in western Europe — the growth of alt-right politics always requires a scapegoat for its purposes and propaganda:

Americans.

But let’s not forget that Americans, especially the USA, historically have been welcoming of Portuguese immigrants.

In 1957–58, the Capelinhos volcano erupted on the Azorean island of Faial, causing massive destruction from lava and smoke. In response, then Senators John F. Kennedy and John Pastore co-sponsored an Azorean Refugee Act. President Dwight Eisenhower signed the legislation in 1958, making 1,500 visas available to victims of the eruption. An extension was enabled in 1962, providing opportunities for even more Portuguese immigrants. According to the United States Census from 2000, there were 1,176,615 Portuguese-Americans, the majority being of Azorean descent.

This led to the passing of the 1965 Immigration Act, which stated if someone has legal or American relatives in the United States, they could serve as a sponsor and, therefore could be a legal alien. This act dramatically increased Portuguese immigration into the 1970s and 1980s. Today, a national organization — PALCUS — represents Portuguese-Americans.

By and large, we don’t want to be those “ugly Americans” of lore.

For the most part, Americans who move to Portugal tend to be respectful and sensitive. We don’t want to change Portugal. Someone who moves anywhere and starts a sentence with “Well, back home we did it like this …” is not going to be happy and will most likely leave.

Actually, many of them do.

Portugal Living Magazine Publisher Bruce H. Joffe has lived in Portugal for almost six years.

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